Company Profile: LJ International Inc. (JADE)

LJ International is a totally vertically integrated company that designs, brands, markets and distributes a complete range of fine jewelry. While specializing in the semi-precious jewelry segment, it also offer high-end pieces set in yellow gold, white gold, platinum or sterling silver and adorned with semi-precious stones, diamonds, pearls and precious stones. The Company distributes mainly to fine jewelers, department stores, national jewelry chains and electronic and specialty retailers throughout North America and Western Europe. Its product lines incorporate all major categories sought by major retailers, including earrings, necklaces, pendants, rings, and bracelets.

The Company employs an international design team and all of their designs and merchandising strategies are proprietary. The exclusive and innovative concepts that are created offer brand potential. Their primary marketing focus has been in North America where they sell directly to certain high volume customers that need specialized product development services, and through a marketing relationship with International Jewelry Connection (IJC) for those customers that need higher levels of service and training. For FY ended 4/02 and the eight months ended 12/02, 73% and 79% of its sales were in North America. Approximately 25% of its sales for the 12 months ended 12/02 were to QVC, Inc.

The Company has established a sophisticated 86,000 sq. ft. production facility in China (city of Shenzhen in Guangdong Province). It purchases imported choice gemstone material from mines located in Africa, China and South America, especially those concentrated in Brazil. It sources its diamonds mainly from suppliers in India.